I’m no expert or lawyer, but it looks to me like they gave the Sec of Treasury full authority to do whatever he likes as long as he reports to Congress and the oversight committee once a month, no restrictions, just guidelines.   It does limit him to $250,000,000,000 in outstanding purchases, $350,000,000,000 with presidential approval written and sent to Congress.  It only requires a written plan of action and 15 days notice for a joint resolution decided with limited or no debate to spend the entire $700,000,000,000.  So whoever said they have to come to congress for approval for the next $350,000,000,000, is wrong.

 

Another interesting side note, they actually put language in their changing the constitutional rules, making it ok for either branch to put forth a resolution.   It does give the judiciary authority to oversee the Sec’s actions and grant injunctions.

 

It also allows him to do the same with any foreign banks affected.

 

Check out the new debt limit:

 

DEBT.

Subsection (b) of section 3101 of title 31, United States Code, is amended by striking out the dollar limitation contained in such subsection and inserting ‘‘$11,315,000,000,000’’.  (Believe that’s trillions!)

 

The FDIC temporarily insures deposits up to $250,000 until December of 2009.

 

It also suspends Capitol Gain taxes and treats gains or losses from the stock market the same as ordinary income gain or loss.  Also, employers participating in the relief act cannot deduct more than $500,000 in loss from their taxes.  (Judy – executive renumeration for deferred deduction)?

 

It does require additional reporting for securities transactions, but not consequences.

 

WTF???  PERMANENT AUTHORITY FOR DISCLOSURE OF INFORMATION RELATING TO TERRORIST ACTIVITIES.  EXEMPTION FROM EXCISE TAX FOR CERTAIN WOODEN ARROWS DESIGNED FOR USE BY CHILDREN.

 

INCOME AVERAGING FOR AMOUNTS RECEIVED IN CONNECTION WITH THE EXXON VALDEZ LITIGATION.

 

MODIFICATION OF PENALTY ON UNDERSTATEMENT OF TAXPAYER’S LIABILITY BY TAX RETURN PREPARER.

 

SECURE PAYMENTS FOR STATES AND COUNTIES CONTAINING FEDERAL LAND

 

I don’t understand the Alternative Minimum Tax extensions at all…thought it eliminated it, but appears to be to complicated for me.

 

Gives Puerto Rice tax credits for rum export and economic development for American Samoa.  Credit for railroad track maintenance.

 

SEVEN-YEAR COST RECOVERY PERIOD FOR MOTORSPORTS RACING TRACK FACILITY.

 

Credit for Work Opportunities for victims of Katrina and reconstruction in the gulf area.  Tax incentives for investments in the DC area?

 

EXTENSION AND MODIFICATION OF DUTY SUSPENSION ON WOOL PRODUCTS; WOOL RESEARCH FUND; WOOL DUTY REFUNDS.

 

I wanted to print this section in its entirety and get Judy’s interpretation as to whether or not it actually says anything:

 

SEC. 111. EXECUTIVE COMPENSATION AND CORPORATE GOVERNANCE.

 

(a) APPLICABILITY.—Any financial institution that sells troubled assets to the Secretary under this Act shall be subject to the executive compensation requirements of subsections (b) and (c) and the provisions under the Internal Revenue Code of 1986, as provided under the amendment by section 302, as applicable.

 

(b) DIRECT PURCHASES.—

 

(1) IN GENERAL.—Where the Secretary determines that the purposes of this Act are best met through direct purchases of troubled assets from an individual financial institution where no bidding process or market prices are available, and the Secretary receives a meaningful equity or debt position in the financial institution as a result of the transaction, the Secretary shall require that the financial institution meet appropriate standards for executive compensation and corporate governance. The standards required under this subsection shall be effective for the duration of the period that the Secretary holds an equity or debt position in the financial institution.

 

(2) CRITERIA.—The standards required under this subsection shall include—

 

(A) limits on compensation that exclude incentives for senior executive officers of a financial institution to take unnecessary and excessive risks that threaten the value of the financial institution during the period that the Secretary holds an equity or debt position in the financial institution;

 

(B) a provision for the recovery by the financial institution of any bonus or incentive compensation paid to a senior executive officer based on statements of earnings, gains, or other criteria that are later proven to be materially inaccurate; and

 

(C) a prohibition on the financial institution making any golden parachute payment to its senior executive officer during the period that the Secretary holds an equity or debt position in the financial institution.

 

(3) DEFINITION.—For purposes of this section, the term ‘‘senior executive officer’’ means an individual who is one of the top 5 highly paid executives of a public company, whose compensation is required to be disclosed pursuant to the Securities Exchange Act of 1934, and any regulations issued thereunder, and non-public company counterparts.

 

(c) AUCTION PURCHASES.—Where the Secretary determines that the purposes of this Act are best met through auction purchases of troubled assets, and only where such purchases per financial institution in the aggregate exceed $300,000,000 (including direct purchases), the Secretary shall prohibit, for such financial institution, any new employment contract with a senior executive officer that provides a golden parachute in the event of an involuntary termination, bankruptcy filing, insolvency, or receivership. The Secretary shall issue guidance to carry out this paragraph not later than 2 months after the date of enactment of this Act, and such guidance shall be effecve upon issuance.

 

 

Includes Alternative Energy incentives and credits.  I’m unsure, but it appears that it only allows relief from the Alternative Minimum Tax by substituting credit for the alternative energy credits.  It appears to limit alternative energy bonds to $800 million.  It gives credits for steel industry fuels, whatever that means, coal I think.  Includes research grants.  Includes TEMPORARY INCREASE IN COAL EXCISE TAX; but includes special rules and exceptions for coal producers and exporters.

 

IT ALSO REDUCES TAXES ON FOREIGN OIL!

 

Includes disaster relief from hurricane Ike.

 

Substantial tax credits for purchases of electric cars, based on weight.  It actually decreases funds for conservation programs to 70%.  Extends home energy efficient tax credit to Dec. 2009.  What I don’t understand is why the alternative energy bill couldn’t pass on its own?

 

One thing I found interesting about this bill is that for much of the text, it is simply adding to and/or removing sections of other bills, which you would have to find and read to understand exactly what it does.  I wonder how many congress people actually do this, or even read the full text?

 

Subtitle A—General Provisions

Sec. 501. $8,500 income threshold used to calculate refundable portion of child tax credit.

Sec. 502. Provisions related to film and television productions.

Sec. 503. Exemption from excise tax for certain wooden arrows designed for use by children.

Sec. 504. Income averaging for amounts received in connection with the Exxon Valdez litigation.

Sec. 505. Certain farming business machinery and equipment treated as 5-year property.

Sec. 506. Modification of penalty on understatement of taxpayer’s liability by tax return preparer.

Subtitle B—Paul Wellstone and Pete Domenici Mental Health Parity and Addiction Equity Act of 2008

Sec. 511. Short title.

Sec. 512. Mental health parity.

TITLE VI—OTHER PROVISIONS

Sec. 601. Secure rural schools and community self-determination program.

Sec. 602. Transfer to abandoned mine reclamation fund.

TITLE VII—DISASTER RELIEF

Subtitle A—Heartland and Hurricane Ike Disaster Relief

Sec. 701. Short title.

Sec. 702. Temporary tax relief for areas damaged by 2008 Midwestern severe storms, tornados, and flooding.

Sec. 703. Reporting requirements relating to disaster relief contributions.

Sec. 704. Temporary tax-exempt bond financing and low-income housing tax relief for areas damaged by Hurricane Ike.

Subtitle B—National Disaster Relief

Sec. 706. Losses attributable to federally declared disasters.

Sec. 707. Expensing of Qualified Disaster Expenses.

Sec. 708. Net operating losses attributable to federally declared disasters.

Sec. 709. Waiver of certain mortgage revenue bond requirements following federally declared disasters.

Sec. 710. Special depreciation allowance for qualified disaster property.

Sec. 711. Increased expensing for qualified disaster assistance property.

Sec. 712. Coordination with Heartland disaster relief.

 

Appears to extend some of Bush’s tax credits for business, both foreign and domestic.

 

Anyway, that’s my report, make of it what you will..

 

Judy